DocuSign Inc (DOCU, Financial), a company that provides electronic signature solutions, has reported an insider sale according to a recent SEC filing. The Chief Financial Officer (CFO) of the company, Blake Grayson, sold 7,018 shares of the company on March 19, 2024. The transaction was executed at a price of $57.03 per share, resulting in a total sale amount of $400,126.54.
DocuSign Inc is known for its cloud-based electronic signature platform that enables individuals and businesses to manage electronic agreements. The platform automates the entire agreement process, allowing users to complete transactions quickly and securely online.
Over the past year, Blake Grayson has sold a total of 21,054 shares of DocuSign Inc and has not made any purchases of the stock. This latest transaction continues a trend of insider selling at the company, with a total of 17 insider sells and no insider buys reported over the same period.
The insider transaction history suggests a pattern of sales among insiders at DocuSign Inc, which may be of interest to investors monitoring insider behaviors.
In terms of valuation, DocuSign Inc's shares were trading at $57.03 on the day of the insider's recent sale, giving the company a market capitalization of $12.021 billion. The price-earnings ratio of the company stands at 232.09, which is significantly higher than the industry median of 27.93 and also above the company's historical median price-earnings ratio.
Despite the high price-earnings ratio, the stock appears to be undervalued when considering the GuruFocus Value. With a share price of $57.03 and a GuruFocus Value of $86.09, DocuSign Inc has a price-to-GF-Value ratio of 0.66, indicating that the stock is significantly undervalued based on its GF Value.
The GF Value is calculated considering historical trading multiples, a GuruFocus adjustment factor based on the company's past returns and growth, and future business performance estimates provided by Morningstar analysts.
Investors often look at insider selling as a signal of how insiders view the company's stock value and future performance. However, it is important to consider that insider transactions can be influenced by various factors and may not necessarily reflect the insider's view on the company's future performance.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
